Covered Bonds

There were tentative signs today (Monday) that the shake-out from the recent volatility in capital markets could be coming to an end, with covered bond market-making more consistent and spreads calming down from last week.

Richard Tynan, executive director and head of investment grade corporate syndication at Morgan Stanley, has left the bank to join Depfa.

Last night’s news that Northern Rock had arranged emergency funding from the Bank of England led to a standstill in UK covered bonds this (Friday) morning.

Covered bond syndicate managers were encouraged by signs of life in the wider primary Eurobond market today (Thursday) and by a recovery in secondary levels for covered bonds.

Merrill Lynch has reaffirmed its commitment to the covered bond market following the news that it has let go Benjamin Moulle, its covered bond trader, as reported in The Cover yesterday (Wednesday).

The Cover understands that Merrill Lynch has let go Benjamin Moulle, its covered bond trader.

A week after all hell was let loose in UK covered bonds, the sector experienced one of its calmest days this morning, with spreads recovering from yesterday’s wides.